Ten Lifestyle Group Plc · LSE:TENG
Ten Lifestyle — H1 2020 Earnings Presentation
31 slides from Ten Lifestyle's earnings presentation, May 13, 2020
Slide 1: Interim results for the six months to 29th February 2020
Welcome. Interim results for the six months to 29th February 2020 "Adapting to changing circumstances" May 2020 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 2: Our Mission
Our Mission To become the world’s most trusted service Welcome. 2 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 3: Investment case
Investment case Huge market Established Defendable opportunity market leader market position • • • Providing relevant for technology-enabled long-term contracts services, with value-add, concierge services with ROI, closed user to wealthy and mass group model and affluent via technology integrated t
Slide 4: Half year highlights
Half year highlights Net Revenue* up 11% to £23.8m † Adjusted EBITDA profit of £2.1m Cash ahead of expectations at £9.6m and no debt ‡ ‡ Launched an XL contract at end of H1 2020 & a Large contract in Sept 2019 § High member satisfaction globally Welcome. * Net Revenue excludes the direct cost of sa
Slide 5: Financial Results
Financial Results Welcome. For the six months to 29th February 2020 More details at WWW.TENLIFESTYLEGROUP.COM/INVESTORS 5 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 6: Our revenue model
Our revenue model Typical Contract Supplier commissions High-touch Requests ££ Per High-touch 12% Welcome. Low-touch Requests £ Per Low-touch Service fees & Total Corporate Client Revenue other corporate client revenue 88% Long term contracts often with agreed minimums Source: Audited FY19 IFRS figu
Slide 7: Key financial highlights
Key financial highlights Net Revenue* up 11% to £23.8m with particularly strong growth (+25%) in EMEA region † Adjusted EBITDA profit of £2.1m (H1 2019: loss of £(2.4)m) Operating loss of £(2.1)m (H1 2019: £(4.7)m) Operating expenses and other income of £21.7m (H1 2019: £23.9m): continuing efficienc
Slide 8: Income statement: six months ending 29th February 2020
Income statement: six months ending 29th February 2020 Net Revenue growth +11% with strong 2020 2019 YOY Change growth in base business (+14%) £m £m £m Adjusted EBITDA profit of £2.1m Revenue 25.6 22.6 3.0 (underlying Adj. EBITDA (pre IFRS 16 Net Revenue 23.8 21.5 2.3 Adj EBITDA at breakeven) Operat
Slide 9: Net revenue
Net revenue Net Revenue growth H1 2018/19 vs H1 Overall growth was £2.3m (+11%) 2019/20 (£m) Base business grew by £3.0m (+14%) 3.0 -1.8 1.1 23.8 21.5 - - Impact of the APAC contract lost in H2 2019 was £1.8m in H1 2020 New contracts in the year – growth of £1.1m (+5%) • Large contract launched in S
Slide 10: Net Revenue by region
Net Revenue by region 2020 2019 % change £m £m EMEA 11.9 9.5 25% Americas 7.7 7.3 5% APAC 4.2 4.7 (11)% 23.8 21.5 11% Welcome. EMEA: Growth of £2.5m primarily driven by strong organic growth, and launch of Large contract in September Americas: Whilst there was lower growth in the period we did launc
Slide 11: Continuing technology investment
Continuing technology investment IPO Annual Cash Spend on Technology Built first platform Platform, Communications and Continued investment in our technology Infrastructure platform, IT, content, infrastructure and £12.2m (£m) communications £10.5m Creates competitive advantage, drives efficiency, s
Slide 12: Overall Adj. EBITDA
Overall Adj. EBITDA | Management use the underlying Adj. EBITDA measure which excludes the impact of IFRS 16 Lease accounting The table reconciles from total Adj. EBITDA of £2.1m as reported to total Adj. EBITDA of breakeven (excluding IFRS 16 impact) and provides regional split for comparison to pr
Slide 13: Underlying Adj. EBITDA
Underlying Adj. EBITDA| EMEA: Underlying Adj. EBITDA improved by £2.6m with margins Underlying Adj. EBITDA improving from 6% to 27%, the historic profitability levels in EMEA £m 2020 2019 EMEA 3.2 0.6 Americas: Underlying Adj. EBITDA loss worsened by £0.4m to Americas (2.5) (2.1) £2.5m in the period
Slide 14: Cashflow
Cashflow Operating cashflow significantly improved £m 2020 2019 by £7m year on year Loss before tax (3.3) (4.8) • improved working capital Net finance expense 0.2 0.1 Movement in working capital 1.8 (1.7) • operational efficiencies Non-cash items (share-based payments, 4.1 2.2 • leveraging cost base
Slide 15: Balance Sheet
Balance Sheet £m H1 2020 FY 2019 Net Assets remain strong with a significant cash balance of £9.6m after Intangible assets 10.4 9.0 capital investment Property, plant and equipment 1.9 1.8 Right of Use Asset 6.8 - On transition to IFRS 16, Assets include Cash 9.6 12.3 Right of Use Asset of £6.8m and
Slide 16: Operational update and response to Coronavirus
Operational update . response to and Welcome Coronavirus 16 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 17: Operational Highlights
Operational Highlights Sustained high member satisfaction globally, even during COVID-19 crisis Ten’s proprietary technology continues to drive member satisfaction, efficiency and competitive advantage globally Product enhancements Operating efficiency improved behind Welcome. • technology improveme
Slide 18: Geo-Location
Geo-Location Our Digital Platform offers a ‘near me’ function, so that members can find great experiences and benefits that are nearest to them across Dining, Entertainment, Events and Offers, wherever they are Welcome. 18 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 19: Inspiration
Inspiration Welcome. 19 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 20: Auto Translate
Auto Translate Some content will not be available in secondary global languages but is translated using machine translation to allow, for instance, Brazilian Portuguese speakers to translate content in English about Edinburgh into their desired language. Or, for example, for Japanese speakers Welcom
Slide 21: Favourite & Follow - User preferences
Favourite & Follow - User preferences Welcome. 21 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 22: Live Chat
Live Chat Welcome. 22 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 23: Chat Feature Strategy
Chat Feature Strategy Enhanced Chat user interface, Smart routing through Chatbot Instant FAQ responses via Welcome Brief-taking Virtual Assistants, . Chat via popular messaging apps Ten Chat API for our Clients to with new features category intelligent Virtual designed to get to you’re used to – co
Slide 24: Outlook
Outlook Welcome. 24 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 25: Our corporate clients need us more than ever
Our corporate clients need us more than ever Private Clients are suffering financial losses, financial insecurity and personal or family health concerns Operationally, customer service levels are stressed Pre-coronavirus client engagement tools are less suitable (e.g. face to face, networking events
Slide 26: Ten's B2B proposition improves customer satisfaction / $ metrics
Ten’s B2B proposition improves customer satisfaction / $ metrics Pre-Coronavirus Coronavirus Experience, Access, Value Help & Comfort Ten is proactive and responsive to Travel Travel Inspiration individual’s Staycation Welcome emerging needs, trends and . Virtual Events 2021 bookings Lifestyle Ten G
Slide 27: Our business is driven by what our members need
Our business is driven by what our members need, and not limited to travel, dining and entertainment Thank you to key workers Welcome. Courtesy calls to Over 70s Ten Guides Virtual Events and Webinars 27 27 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 28: Our corporate revenues are secure, blue-chip client list
Our corporate revenues are secure, blue-chip client list Visa RBS HSBC DNB (Norway) Maserati RBC OCBC American City National MI card Coutts CIBC SMBC Express Bank Adam & Mastercard Barclays NatWest SMTC ABSA Welcome. Company Merrill Hyundai Diners Club Tokyo Tokai Alfa Romeo Revolut Lynch Card SuMi
Slide 29: Current Trading
Current Trading Current business • Flexibility of service has maintained high service levels, request volumes and corporate client revenue • Seamless transition to home working and PCI compliance • Continued high levels of contract retention • Many contracts include contractual minimum revenues New
Slide 30: Outlook for 2020 and 2021
Outlook for 2020 and 2021 Robust COVID-19 response but there is uncertainty on assessing outlook Driving efficiencies and costs will maintain a robust cash position Continuing investment in the technology platform Continued development of relevant service propositions Likely to be delays to new cont
Slide 31: For more insights
Welcome. For more insights, please • register for updates at www.tenlifestylegroup.com/investors • follow Ten Lifestyle Group and watch our B2B videos at www.linkedin.com/company/tenlifestylegroup/ © Copyright Ten Lifestyle Group 2020. All rights reserved.